Oil Search - Profile Established in PNG in 1929 Operates all of PNGs producing oil and gas fields In 2006, generated approx 23% of PNGs export revenue and 13% of its GDP. Largest investor and taxpayer. PNG Government is 17.6%…
Oil Search where we operate PNG Kutubu PNG SE Mananda Yemen B35 Yemen B15 3
Our Vision To be an acknowledged leader in oil and gas exploration and production in developing countries. To be a top quartile performer on the Australian Securities Exchange among the ASX 200 leaders 4
Core expertise Developing country specialist Ability to work co-operatively with host governments and local communities Culturally sensitive and diverse Experienced in operating in challenging environments Low cost, innovative,…
World class HSES performance Total Recordable Incidents (TRIs) 1998 2006 14 OSH OGP APPEA 12.7 12 TRI / 1,000,000 Hours 10.6 10.7 9.4 10 Australian Companies 9.1 9.8 9.3 8.3 8 8.5 8.2 7.8 7.3 6.8 7.0 6 5.8 5.2…
2006 performance metrics Record core profit after tax of US207.5m, +4% on 2005, US412m including profit on AGL asset sale Lower production PNG gross production rates 5% higher than in 2005, Oil Search share reduced by AGL asset…
Oil Search net production 40,000 Kutubu Moran Gobe Main SE Gobe Hides Nabrajah SEM 35,000 +10% Post AGL Forecast +6% 30,000 +25% sale 25,000 +23% stb/d 20,000 15,000 10,000 5,000 0 2000 2001 2002 2003 2004 2005…
Financial strength 2006 represented fifth year of growth in core profitability As at May 2007, zero debt and US450m in cash Financial strength to fund internal programmes and acquisitions 10 * 2004 profits were restated…
Costs under control 2005 2006 PNG Oil Field US Costs per Barrel USm USm 7 Kumul 0.45 Field Costs Tariffs 0.82 - Oil: PNG 74.6 57.6 6 Tariffs 1.55 - Oil: MENA 3.1 12.4 Other Field 5 Costs 1.69 - Hides 4.0 6.5 Other Field…
2007 Capital Outlook USm 2006 2007 Actual Outlook Investing : Exploration 122 190 Development 144 126 Corporate 16 70 Financing : Dividends 101 45 * Debt Repayment 126 - *2006 final dividend only 12
DELIVER VALUE 13
PNG Oil Production Highlights SE Mananda Moran 2006: Came onstream in Mar 2006: Production increased by 18% 06. Daily production at 4,000 Three new wells came onstream bopd by year end Kutubu 2006: Natural decline led to…
PNG Oil Production Outlook 80,000 OSH Assumes Added over 34mmbbls 70,000 Field Operatorship in Production 2003-06 60,000 Oil Production (stb/d) Aspiration 50,000 I D nc 40,000 ev r e el m op en 30,000 m ta en l t…
Near Field Drilling Activity Moran 2007-9 development drilling, 1-3 wells Usano Agogo 2007-8 development 2008-9 development drilling, 3-7 wells drilling, 1-4 wells Gobe/SE Gobe 2007-9 workovers and development drilling,…
Usano Development Focus 2007-08 UST 7 drilled 2006-7 Proven oil in eastern extension to Usano 1/2/3 Block SE nose Potential for between 3-7 MBT Arakubi additional wells IDTG Arakubi 1 Pad Location UDT2 pad UDT1 pad UDT3A…
Yemen - Nabrajah Nabrajah gross production currently averaging 7,800 bopd Nab 13 appraisal well underway. Potential for future basement wells being evaluated, pending results from interpretation of 3D seismic and G&G studies.…
Egypt Area A Area A - comprises 2 development leases (5 small Umm El Yusr Exploration oil fields) and four exploration leases Kareem, Yusr, Kheir & Shukheir Focus on increasing Development production, to assist funding…
EXTRACT VALUE 20
Gas Commercialisation In late 2006, undertook major review of PNG Gas Project and other commercialisation options Change in focus to LNG & petrochemicals, which have access to high world gas and liquids pricing Scale of investment,…
Pnyang Juha Angore Mogulu Major gas fields, gas Iehi exploration Korobosea Barikewa Kimu and appraisal opportunities Uramu Pandora 22
LNG for PNG Major growth in global LNG market and strong increase in gas prices over past 2 years makes LNG in PNG attractive Unprecedented interest from range of LNG developers PNG has all the requirements for LNG development:…
LNG for PNG Competition to develop first plant Several development approaches being reviewed and matured Total value chain approach upstream, pipeline, plant, marketing/shipping ExxonMobil model Merchant plant approach specialist…
Key Fields Hides / Angore Fields (OSH 27.5%) 6.5 tcf of Proven and Probable resource Kutubu Complex Fields (OSH - 60.0%) 1.5 tcf plus liquids, largely developed Key strategic resource and infrastructure hub, high value Juha Field…
LNG with ExxonMobil ExxonMobil review indicated a economically robust LNG project from Hides/Angore fields Economics are enhanced if other fields (Juha, Kutubu) included Cost sharing agreement to conduct feasibility study signed in…
Full Foldbelt 6.3Mtpa ExxonMobil LNG Option Estimated Juha 250 mmscfd (nominal) Capital Cost Hides & (USbn): Angore 960 mmscfd Conditioning Plant 66 km 8-inch condensate line - Upstream & 14-inch Kutubu & Agogo gas line…
LNG for PNG OSH and BG have been working since mid-2006 on evaluating LNG development options. Studies have included: Resource base Capital costs for 3.5 mtpa initial train plus expansion Reviewing ideal project structure BG…
LNG for Oil Search OSH objectives: Number of credible development options with excellent partners Striving for early development certainty and best long term value Excellent position in all major fields with likely interest around…
Petrochemicals Maturing opportunity to supply gas to petrochemicals and fertiliser plant in Port Moresby Production range 90 136 PJ pa Product price with linkage to international energy markets Strong fit to Kutubu field resource…
Other Complementary Gas Activities Significant expansion of appraisal and exploration programme for gas, aimed at increasing contractable gas Juha wells Kimu Korobosea Barikewa Potential Juha development despite J-5 results,…
CREATE VALUE 32
PNG Exploration Juha Oil exploration 40-50 mmbbl net risked NW Paua reserves being tested in 2007 Kutubu, Gas - Co-ordinated programme Arakubi to add reserves to support Mogulu commercialisation projects Cobra Mananda Attic PNG…
PPL219 - Kutubu 2 PPL 219 WI % Oil Search 91.25 Merlin Petroleum 8.75% Kutubu 2 Close to Iagifu-Hedinia fields quick tie-in possible Inadequately tested by Kutubu 1X (1988) Only Toro logged, but Iagifu as secondary target…
PDL2 - Arakubi PDL2 WI % Line P N Oil Search 72.4* Depth 04-411 migra tion AGL 13.9 Merlin Petroleum 7.9 PRK 7.9 Arakubi structure Located 2km from infrastructure, and sits above and NE of Usano, Usano 2x block may share…
PPL 233 NW Paua PPL233 WI % Oil Search 52.5 Esso Highlands 47.5% Highly prospective structure adjacent to Moran Digimu target with Toro secondary Wide range of reserves Partially constrained by Paua 1X well (1996) Important…
MENA 2007 Remaining Drilling Programme Exploration: 4 wells in Egypt, 6 wells in Yemen and 1 in IRAQ Iraq have been drilled in current programme Total wells still to EGYPT be drilled: 24 15 Exp + 9 Dev Yemen: 3 Rigs Onshore…
Yemen Exploration Significant Drilling Campaign testing 200-300 mmstbo. BLOCK 35 6 wells drilled, up to nine additional exploration wells planned for balance of 2007 BLOCK 7 Reeb-1 Al Magrabah-1 May Current NABRAJAH…
Egypt - East Ras Qattara Early Success Shahd 1 East Ras S N First well in ERQ Qattara programme Minimum 15m oil pay in Upper & Lower Bahariya Fm Ghard-1 Tested 1,517 bopd Discovery Ghard-1 combined 2 zones Shahd 1 Shahd-1…
Egypt - East Ras Qattara String of Pearls Mesk-1 Proposed Updip of oil in Kharita and Abu Roash reservoirs Ghard-1 2000 bopd Shahd-1 1517 bopd Rana-1 Proposed Follow up at Rana East, Rana NE, Enap and Salma 12 prospects…
Outlook 41
Outlook - Production PNG development opportunities mean gross production can continue at around 50,000 bopd for at least three years Continuous Nabrajah area drilling programme is underway. 3D seismic has identified a number of…
Outlook - Exploration 2007 biggest programme in Companys history MENA programme has potential to add to production, short lead times Most of PNG oil targets close to existing infrastructure Gas exploration/appraisal activity a…
Outlook - Gas Range of commercially attractive opportunities available OSH well placed competitively, with resources at Hides/Angore/Juha, Kutubu, Forelands fields, representing a spectrum of risks and rewards with options for…
Outlook 40,000 35,000 MENA Production Net Oil Production (stb/d) 30,000 25,000 20,000 PNG Development 15,000 10,000 PNG Production 5,000 ACTUAL FORECAST - 6 9 1 2 7 0 3 8 6…
Summary Oil Search remains on strong growth trajectory Existing oil production assets performing well, costs under control, extended production plateau Large discovered gas resource will be commercialised. 30% interest in LNG…
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